Motorola Mobility narrows losses in Q1

Motorola Mobility says first-quarter revenues rose by 22 per cent to US$3 billion, and net loss shrank to US$81 million from US$212 million a year ago.

In the quarter, the company generated US$107 million in operating cash flow, its seventh consecutive quarter of positive cash generation. Total cash of US$3.3 billion at the end of the quarter includes cash, cash equivalents and cash deposits.

"In the first quarter, we reached a major milestone in our history by becoming a new independent, public company,” commented Sanjay Jha, chairman and chief executive officer, Motorola Mobility. “We enhanced our product portfolio by delivering compelling experiences with the launch of Motorola ATRIX and Motorola XOOM, as well as offering unique end-to-end video solutions for the home."

Mobile Devices net revenues in the first quarter were US$2.1 billion, up 30 per cent compared with the year-ago quarter. The GAAP operating loss was $89 million compared to an operating loss of US$192 million in the year-ago quarter.

Motorola Mobility shipped a total of 9.3 million mobile devices, including 4.1 million smartphones and more than 250,000 Motorola XOOM tablets in the quarter to end-March. In comparison, Motorola Mobility shipped 8.5 million mobile devices, including 2.3 million smartphones in Q110.

The company’s outlook for the second quarter of 2011 is for a net profit of up to US$35 million, or at least breakeven.